I saw this question (rather misplaced) in the MS Office forum, so I thought answering it here.

It's simple. You don't upgrade the OS from within the OS. You boot from the Vista DVD, and than it doesn't matter at all if the OS on the hard disk has an 'hourglass over the taskbar' error or not. You run in the install-Vista-mode from the DVD, not in any mode of Windows XP.

I'm afraid, however, that you might be one of the first people around to have the 'hourglass over the taskbar' error in Windows Vista. It might well be the cause carries over. Then you must do a clean install of Windows Vista, not an upgrade of a corrupted XP.

Hope this helps.


Kees